FAQ - How can I offer benefits that are not Group Health Are

FAQ - How can I offer benefits that are not Group Health Are -

you want to offer health benefits? , You have seen health insurance plans in standard group and were either in sticker shock, or simply do not qualify. understand the benefits of health insurance for you and your employees, but as half of all small businesses, you have decided to group health insurance is not the answer. So what is the answer? How you can offer benefits that group health insurance are not

The answer -. Individual health insurance combined with a premium refund assembly

How are the benefits, not Group Health

As you probably know that firsthand, group health insurance has become too expensive and restrictive. As such, small business employees are transitioning to individual health insurance. They offer more health benefits -. contribute only in a different way

Instead of an employee group health insurance premiums, small businesses contribute to a premium refund arrangement. In other words, small businesses formal plans set staff report for their individual health insurance .

This sounds like a big change retirement benefits - but easier to understand it, let's compare it to do all it with something we know. In the past, the standard way to provide pensions through a pension - a defined benefit pension plan. As the costs began to increase, employers began 401k retirement assumption where they define a contribution for the employee retirement and employees decide how to invest it. Retired ball a 401k is a defined contribution plan. If 401k first introduced, it was a great disturbance and change, but now it is commonplace.

So what does this have to do with health insurance? A similar shift occurs.

employers who traditionally set up group health insurance plans (defined benefit) are not in a position with rising costs and the conversion to keep to a premium refund programs where they define their contribution to employees healthcare (a contributory health plan ).

As a Premium Reimbursement Arrangement to Offer

a premium to adopt reimbursement program and health benefits have not group health, follow these simple steps:

1. Cancel your group health insurance (if you have one).

2. a premium refund arrangement up (it may be a result before tax or after tax arrangement).

3. staff resources provide an individual health insurance to choose. The employee may purchase a plan through the marketplace in your country and access the premium tax credits if they are eligible.

4. represents Reimburse employees for their premiums approved expenses, up to the amount in their pocket money available. . Tip: Most companies use a premium refund Software to ensure compliance and make this process easy

Why do I not heard about this option

One might think - why I have not heard before this option? This is not entirely surprising.

While many small businesses this approach still provides health benefits of adoption, the prevailing fashion health benefits, is through the health insurance employer group. But with the rising cost of group health insurance and the new benefits for individual health insurance, it makes good sense for employers to switch to individual health insurance premiums and reimbursement.

In fact, in a recent White Paper we predict that up to 60% of small businesses goes away health insurance by group and by 2017

premium refund programs laid Soon as we saw with 401k the sector to retire, it will become commonplace to provide benefits that are not group health.

What do you think? Which questions do you have? Leave a comment below.

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